Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg technology with
Speaker 1: Emily Jay. I'm emily check in San Francisco, and this
Speaker 1: is Bloomberg technology coming up in the next hour. Could
Speaker 1: it be the secret to a peloton rebound? The bike
Speaker 1: maker finally debuts it's long awaited rower. But well, customers
Speaker 1: spark over more than three thou dollars for it. We'll
Speaker 1: discuss plus web. Three meets five G in a first
Speaker 1: of its kind. Deal t mobile is teaming up with
Speaker 1: noble labs to launch the first crypto powered mobile service.
Speaker 1: We'll talk to the CEO later this hour, and how
Speaker 1: Slana is trying to tackle everyone's energy crypto problems one
Speaker 1: of chain at a time. Co founder at a tole
Speaker 1: yaco Venko is with US Peloton launching it's long awaited rower,
Speaker 1: aiming to expand the fitness company's appeal and help it
Speaker 1: reverse that sales slide. It'll start taking orders for the
Speaker 1: PELOTON row and begin initial deliveries to US customers in December.
Speaker 1: Our very own marker and joins us now for more
Speaker 1: details on this. So, Mark you've been reporting on this
Speaker 1: rower for a long time now. Our customer is gonna
Speaker 1: pay for it. I certainly think Peloton has a group
Speaker 1: of consumers that want to build out their own home
Speaker 1: gym where they own a Peloton road, where they own
Speaker 1: a Peloton bike plus, where they own a tread, where
Speaker 1: they own the Pelletson Guide and they subscribe to their
Speaker 1: forty four dollar on the package. Right. But in terms
Speaker 1: of the overall peloton story, I don't think the road
Speaker 1: device moves the needle right now. This is a US
Speaker 1: only launch. This is a very premium price product. It
Speaker 1: comes in between five and more than the main competitors.
Speaker 1: But it's everything you would want from Peloton in awing machine.
Speaker 1: I just don't think rowing has that place in the
Speaker 1: market that a bike or tread might, or people are
Speaker 1: going to rush out to buy this thing unless you
Speaker 1: are one of those fitness enthusiasts. Right. So I think
Speaker 1: there is limited appeal compared to their other products. So
Speaker 1: I don't think this changes the Peloton story very much
Speaker 1: and you see that in the stock today is still
Speaker 1: down about three and down about one percent for the week.
Speaker 1: But obviously more hardware, more product offerings, is a good thing.
Speaker 1: And then one interesting point. I will make about the
Speaker 1: row is that they're really pushing the content subscription. If
Speaker 1: you buy a bike or bike plus, you do get
Speaker 1: a few basic classes for free and you don't need
Speaker 1: to pay for that dollar a month peloton subscription. Not
Speaker 1: the case with the row. To get any of the
Speaker 1: tailored content for rowing, you need to pay that fee,
Speaker 1: which could drive additional revenue over the long term. What
Speaker 1: does peloton think about how much this is really going
Speaker 1: to change their situation? I mean, do you know how
Speaker 1: much they're projecting? I mean do they think this is,
Speaker 1: you know, more of a niche product, or do they
Speaker 1: have higher hopes? So, when Peloton announced their most recent
Speaker 1: earnings about a month ago, now, tucked in several paragraphs
Speaker 1: now is a change to the reporting structure. They're no
Speaker 1: longer guiding full years in advance right and so although
Speaker 1: we have q one earnings coming up later in the year,
Speaker 1: we don't really have an estimate for their fiscale. This
Speaker 1: product won't officially start shipping until December, which the company
Speaker 1: has as their fiscal q two. So we really have
Speaker 1: no way to know how this is going to benefit
Speaker 1: the company financially at this point. My guest is given
Speaker 1: the launch will be US only. Given the high price point,
Speaker 1: it will be pretty incremental, probably throughout fiscal you know,
Speaker 1: who can guide, to guide that far ahead though? Anymore?
Speaker 1: I mean apple did away with guidance long ago. I mean,
Speaker 1: should that be our expectation anymore, especially in a massive downturn?
Speaker 1: You know, my personal opinion is that apple has been
Speaker 1: making the right decision, not guiding right. If I'm running
Speaker 1: a company, you basically only want to do as much
Speaker 1: as you're legally required to do. Apple went away from
Speaker 1: iphone unit sales a few years ago. That coincide with
Speaker 1: the greater focus on revenue versus units, as they raised
Speaker 1: a SP S. I think you're seeing a similar thing
Speaker 1: happened with pellets on here, where the individual units, some
Speaker 1: of the individual numbers, the long out forecasts really aren't
Speaker 1: not as important as the overall revenue number. The other
Speaker 1: thing I'll say about Paletson forecasts is that they've been
Speaker 1: missing right their guidance the last several quarters. At this point,
Speaker 1: things have been so in flux for the company that
Speaker 1: it's really impossible for them to really seriously guide. You know,
Speaker 1: more than a quarter out they've made pretty fundamental changes
Speaker 1: to their you know their financial structure and their operational structure.
Speaker 1: Recently they've had many layoffs. I think they've laid off
Speaker 1: about four thousand people across calendar two with this point.
Speaker 1: So clearly many changes being made to their cost structure there.
Speaker 1: They moved away from in House Logistics and some in
Speaker 1: house operations. They've saw manufacturing equipment in house and they're
Speaker 1: relying on outside manufacturers. Interestingly enough, they're relying on some
Speaker 1: of the same manufacturers that apple uses to build some
Speaker 1: of their latest products. So you're seeing a big cost
Speaker 1: structure change there and I think you'll hear more about
Speaker 1: how those cost changes are going to improve their bottom
Speaker 1: line probably sometime in October and November. Meantime, you've got
Speaker 1: other companies like soul cycle moving in and trying to
Speaker 1: take advantage of of Peloton's struggles. I mean, are they,
Speaker 1: you know, gonna be trying to turn around in a
Speaker 1: and in a totally different fitness landscape? You know, I
Speaker 1: think Nordic track is probably, you know, licking their chops
Speaker 1: right now when they saw that peloton row price point
Speaker 1: check Nordic tracks website earlier this week and they're rowing
Speaker 1: machines top out at eighteen right. Obviously the products are
Speaker 1: comparable and some of their functionality. Peloton is really pushing
Speaker 1: their AI and the machine learning integration. There's actually a
Speaker 1: few cool, you know, personalization tweaks in the peloton row
Speaker 1: where they use a and your own personal pace targets
Speaker 1: that you set to interact with the content that plays
Speaker 1: on the screen. So depending on your paste target or
Speaker 1: who's using the machine, uh, the instructure will give you, you
Speaker 1: you know, different goals and such. So it's actually pretty
Speaker 1: cool from what I've seen and been told by the
Speaker 1: company of how it all works together, and I think
Speaker 1: that is one key differentiator. The question for many consumers
Speaker 1: are those, you know, nice to have that more luxurious element,
Speaker 1: more personalization. Is that worth the extra thousand dollars? I
Speaker 1: think for some people who may be already be paying
Speaker 1: eighteen llars for a rower, maybe another thousand dollars is
Speaker 1: not too much, especially if you're already in the Peloton
Speaker 1: ecosystem where you're paying forty dollars a month and that
Speaker 1: gets you access to content on all of your peloton machines.
Speaker 1: I wish I knew how many people own more than
Speaker 1: one piece of Peloton equipment. I think that would be
Speaker 1: a key metric to know. I my sense is it's
Speaker 1: not a huge number, but you know, maybe times are changing. Bloombergs,
Speaker 1: part germ, and thank you so much, as always, for
Speaker 1: your reporting. Meantime, the investor known as the SPEC being
Speaker 1: says he's winding down two of his blank check companies,
Speaker 1: Jamath polly Hapatia, failed to find companies to successfully take public.
Speaker 1: He's now going to return more than a billion and
Speaker 1: a half dollars to investors. He says valuations and volatility
Speaker 1: the two biggest barriers to closing deals. It's been yet
Speaker 1: another dry summer here in California, with the state continuing
Speaker 1: to experience longer wildfire seasons as a direct result of
Speaker 1: climate change. And while it's possible to be on the
Speaker 1: lookout for fires, it is often already too late by
Speaker 1: the time they're spotted. So a new startup has devised
Speaker 1: a computer vision enabled system to catch the beginnings of
Speaker 1: wildfires before they become mega fires. It's called Pan o
Speaker 1: Ai just got twenty million dollars in new funding from
Speaker 1: initialized capital partner, Kim Mike Cutler joins us now to
Speaker 1: talk a little bit more about this investment. So Kim
Speaker 1: talk to us about how the technology works, given that
Speaker 1: a lot of these fires are starting in the middle
Speaker 1: of nowhere? Yeah, I mean what they have is a
Speaker 1: large full stack hardware software platform that enables them to
Speaker 1: visualize a huge range of territory and that's paired with software,
Speaker 1: computer vision, that and that identifies wildfire fire starts like
Speaker 1: smoke fluid multiple cameras, you can kind of triangulate where
Speaker 1: they're starting from, Um and so I think it's I
Speaker 1: think it's really you know, I I grew up in
Speaker 1: California and you know, it's important to note that wildfire
Speaker 1: is actually a very natural and normal part of the
Speaker 1: California ecosystem or environment, and trees and plants and everything
Speaker 1: are actually evolved to burn. Our most iconic plants, even
Speaker 1: like sequoia trees, require fire to actually reproduce. But over
Speaker 1: the last hunderd years, as United States is engaged in,
Speaker 1: you know, a practice of fire suppression and combined with
Speaker 1: Climate Change, Um, you know, a modest degree, you know,
Speaker 1: a modest change in temperature influences aridity, the lack of
Speaker 1: humidity and Um, you know, creates more, you know, long
Speaker 1: and longer dry seasons, which enables small fires to get
Speaker 1: wildly out of control, and so being able to have
Speaker 1: a system that enables you to recognize when fires start
Speaker 1: within fifteen minutes of them starting on one of these
Speaker 1: very high risk days, Um, you know, can allow us
Speaker 1: to manage our wildfire issue more predictably. That's said, of course.
Speaker 1: You know, we are in a system where it is
Speaker 1: going to happen more often. We're gonna we're going to
Speaker 1: live in a world where we're gonna have to have
Speaker 1: more prescribed and manage Birns as well. Kim, you used
Speaker 1: to be a tech journalist before you became an investor.
Speaker 1: Talk to us about the pivot to climate investing Um.
Speaker 1: You know, I think if you look at my body
Speaker 1: of work, I've always been really engaged with these kind
Speaker 1: of really tangible problems that affect everyday lives, whether that's
Speaker 1: housing affordability, job mobility, socio economic mobility. Um and climate
Speaker 1: is obviously, you know, increasingly a piece of that. I
Speaker 1: think it's important to note that initialized capital, Um actually
Speaker 1: been investing in companies that have that that addressed climate
Speaker 1: change and emissions. We've done it for many, many years.
Speaker 1: There are many companies in the portfolio including run wise,
Speaker 1: which helps thousands of buildings manage their energy usage and therefore,
Speaker 1: you know, reduce emissions. We have companies like Albedo, which
Speaker 1: recently got a huge upground from breakthrough energy ventures, that
Speaker 1: is doing low flying satellites to look like satellites so
Speaker 1: that we can have really accurate imagery of of you know,
Speaker 1: our terrain missions and and and heat sources and all
Speaker 1: the kinds of stuff like that. And then I I
Speaker 1: also let a deal in cult sac, which is doing
Speaker 1: car free neighborhoods and is actually launching its first car
Speaker 1: free community at the end of this year and in
Speaker 1: January and Tempe. And you know, transportation is of the
Speaker 1: US missions. So we've actually been doing it for quite
Speaker 1: a while, hell, um. But of course, you know, climate
Speaker 1: tech in general is having a second wave. You know,
Speaker 1: there was an earlier wave, like ten fifteen years ago, Um,
Speaker 1: when earlier venture capital firms were doing clean tech. And
Speaker 1: obviously in the last five years, Um, it's becoming undeniable.
Speaker 1: It is here, it is now. You know, we all
Speaker 1: remember the Orange Day from two years ago when we
Speaker 1: walked outside and we couldn't see the sun. Um, you
Speaker 1: can't ignore it anymore. and and therefore we really have
Speaker 1: to come together as a society. You know, whether that's
Speaker 1: through the incredible three seventy billion dollar inflation reduction act,
Speaker 1: you know that the federal government just that Biden just signed,
Speaker 1: and we also have to do it in the private sector,
Speaker 1: with lots of entrepreneurs attacking all kinds, all sides of
Speaker 1: this problem as well. Right, remember the Orange Day? Well,
Speaker 1: I wonder, though, we're, you know, now we're in the
Speaker 1: midst of this massive downturn. Is that denting the momentum
Speaker 1: behind climate investing at all? You know, I think it's.
Speaker 1: It's it's actually kind of interesting. Um. So, you know,
Speaker 1: climate tyche is actually one of the spots that is
Speaker 1: still very competitive for deals right now. There's a lot
Speaker 1: of capital flowing into it, particularly at the earlier stages. Um.
Speaker 1: I think there's a number of forces kind of creating
Speaker 1: pressure for that, which is just obviously the immediacy and
Speaker 1: scale of the problem, Um, but also, you know, there
Speaker 1: are a lot of limited partners um into a lot
Speaker 1: of different other you know, funds that like that. What
Speaker 1: capital deployed quickly, and so we're seeing a lot of
Speaker 1: at least at the early stage, lots of lots of
Speaker 1: climate deals are continuing to happen and continue to move
Speaker 1: forward and then continue to be competitive. Now, you've commented
Speaker 1: and reported on San Francisco Culture for years and I'm
Speaker 1: so curious what your take is on the recovery, or
Speaker 1: the La or the lack thereof, of San Francisco coming
Speaker 1: out of the pandemic. What's your sense of how hard
Speaker 1: tech culture has been hit, if it can recover and
Speaker 1: if there's really a reason startups need to be in
Speaker 1: San Francisco anymore? Sure? Um, so I have. I mean
Speaker 1: I have many thoughts, but I could do I could
Speaker 1: do a lot longer, Um, you know, more time, but Um,
Speaker 1: you know, on on. On the you know, startup side.
Speaker 1: You know, I've actually shared a lot of data from
Speaker 1: a portfolio during and throughout the pandemic showing that we
Speaker 1: went from, you know, San Francisco obviously being the leading
Speaker 1: place that companies would have a headquarters to you know
Speaker 1: distributed Um or remote teams kind surpassing that, but San
Speaker 1: Francisco was still like the number one physical destination that
Speaker 1: that that companies wanted to be located in. Um, I
Speaker 1: think on the government side, I mean, you know, there
Speaker 1: was a great ten years that the city had, you know,
Speaker 1: in terms of tax revenues companies being founded there, and
Speaker 1: it kind of overplayed its hand and I think it
Speaker 1: would have been really important for say, you know, you know,
Speaker 1: the Board of supervisors, even the mayor, who has generally
Speaker 1: been supportive tech, to come out earlier and say that,
Speaker 1: you know, really wanting to partner with with employers here
Speaker 1: and even now, like two or three years and you
Speaker 1: don't really get the sense that any of you know,
Speaker 1: aside from the mayor's office, like any of the leadership
Speaker 1: in the city, really wants companies here. Um, and I
Speaker 1: know that doesn't make or break a decision, but like
Speaker 1: it's definitely like you can compare and contrast the leadership
Speaker 1: of different cities and you know see where where you know,
Speaker 1: people feel really excited about being and so I do
Speaker 1: think that tone matters a lot. All Right, uh, well,
Speaker 1: appreciate you joining US initialized capital partner, Kim My cutlor.
Speaker 1: Good to have you back. Thank you so much for
Speaker 1: having me. Well, NASTAC is making its first major push
Speaker 1: into crypto. The second largest stock exchange will start by
Speaker 1: offering custody services for Bitcoin and either to its institutional clients.
Speaker 1: This will put NASDAC in competition with Crypto firms like
Speaker 1: coin base and big go to a certain extent. Coming
Speaker 1: up a huge day for the car industry, with a
Speaker 1: big EV order from hearth and a one billion dollar
Speaker 1: warning from Ford. What's that all about? We'll tell you next.
Speaker 1: This is Bloomberg, a suburb of Shanghai is being touted
Speaker 1: as China's new Silicon Valley. Ling Gong is quickly becoming
Speaker 1: a semiconductor and evy manufacturing hub quick takes. Charlie Jew explains.
Speaker 1: This is Lin gone, a suburb of China's financial center
Speaker 1: of Shanghai. Over the past few years, tens of billions
Speaker 1: of dollars have poured into this small town. I'm currently
Speaker 1: in Lincoln special area, which is part of the Shanghai
Speaker 1: Free Trade Zone. Three years ago, President Sign Ping identified
Speaker 1: as a frontier hub for future industries. You know, from
Speaker 1: artificial intelligence to electric vehicle and from chip making to
Speaker 1: bio medicine. Those are the industry that China wants to
Speaker 1: dominate in the twenty first century. They're also at heart
Speaker 1: of the competition between China and the US. China needs
Speaker 1: to import four thirty billion dollars of semiconductors annually to
Speaker 1: build iphones, drones, laptops and other electronics, because it has
Speaker 1: very little high end chip making capabilities of its own. That,
Speaker 1: in turn, is forcing the Chinese government to step up
Speaker 1: its own indigenous innovation and boost self sufficiency in order
Speaker 1: to rely lessons foreign technology in the future. Critics, Charlie,
Speaker 1: you there. Meantime, rental car giant hurts announced it all
Speaker 1: by a hundred seventy five thousand evs from GM over
Speaker 1: the next five years. Meantime, GM's crosstown rival Ford Start
Speaker 1: Stock Sync by the most in eleven years. Has schobal
Speaker 1: inflation and supply chain paint hurts its bottom line. Covering
Speaker 1: it all, who else but are at bloodlow? Can you
Speaker 1: square the circle for us? Aid? Yeah, I mean it's
Speaker 1: been a huge day for the industry and neither piece
Speaker 1: of news helped stop market very much at all. For hurts,
Speaker 1: it's really interesting right because they have been very active
Speaker 1: in trying to electrify their rental fleet. Remember, they've already
Speaker 1: got deals with others, but they had this objective of
Speaker 1: of their rental fleet being electrified by four and this
Speaker 1: is quite aggressive right at this time where GM's transitioning
Speaker 1: to electric drive train. A hundred seventy five thousand evs
Speaker 1: over a five year period is a lot of cars.
Speaker 1: And it's not just one of their lines. They're talking
Speaker 1: about Buick, caddy, Chevy and they're going to start shipments
Speaker 1: of the Bolt E V and EU v as soon
Speaker 1: as the first quarter of next year. So this seems tangible.
Speaker 1: But again, look at your screen. It didn't do much
Speaker 1: to support the stock on Tuesday. So talk about for them,
Speaker 1: that's quite a big drop. What's going on here? Yeah,
Speaker 1: I mean, let's just say it again. For four this
Speaker 1: was the biggest drop in its stock in eleven years.
Speaker 1: And what they did is revised guidance for the current
Speaker 1: period because inflation around the world is meaning higher costs
Speaker 1: for them and supply chain pains continue missing. There are
Speaker 1: meaning there are apart shortages, real part shorusages. The net
Speaker 1: result there are forty thousand and forty five thousand Ford
Speaker 1: Suvs and pickup trucks sitting in a parking lot somewhere
Speaker 1: that are not ready to ship to customers. Now the
Speaker 1: important point. Ford reaffirmed its full year guidance and said
Speaker 1: that they'd be able to get the missing parts back,
Speaker 1: put them in these vehicles and sell them by the
Speaker 1: end of this year. But clearly the market didn't believe them.
Speaker 1: When you look at the severity of that stock. Is
Speaker 1: it semi conductors that are causing the real pain here? Yeah,
Speaker 1: this is fascinating because in the in the statement, Ford
Speaker 1: didn't say very much at all. They didn't specify. All
Speaker 1: we have to go on is that semi conductors have
Speaker 1: been an issue throughout this year and even before that.
Speaker 1: GM earlier in the year, in July, kind of gave
Speaker 1: a similar warning that they had these this inventory of
Speaker 1: non shippable cars because of missing parts, and semi conductors
Speaker 1: were a part of that. So we don't have the specifics.
Speaker 1: We knew that in some sections of the semi conductor market,
Speaker 1: specific types of chips were improving inventories were starting to
Speaker 1: build up, but we hope to get that granularity when
Speaker 1: Ford actually reports earnings next month because, remember, this was
Speaker 1: them front running it. This was a prelimb update to
Speaker 1: their guidance. All right, Lulo, trends. I know you will
Speaker 1: continue to follow. Thanks much. The SALONA foundation has res
Speaker 1: the third and released the third of its energy impact report.
Speaker 1: slants overall emissions rose roughly in the past six months,
Speaker 1: driven by overall growth in its validator network, the number
Speaker 1: of computers running the blockchain and the addition of e
Speaker 1: waste emissions. In this analysis, here to talk about that
Speaker 1: and more's a lot of laps. Co Founder on a
Speaker 1: totally Yaco Vengo, as well as our own crypto contributor,
Speaker 1: Shinali Bass and a totally. Thank you so much for
Speaker 1: joining us. How do these numbers strike you? Um, I
Speaker 1: think SALONA is doing great. If you look at the
Speaker 1: overall energy per transaction, it's, uh, you know, for auctions action,
Speaker 1: as less than a google search and maybe two to three,
Speaker 1: you know, Google searches for an expensive one. Um, basically
Speaker 1: is as good as using a web to service, and
Speaker 1: I'm really proud of that. So at this point, what
Speaker 1: further steps can be taken to reduce energy use on
Speaker 1: the SALONA blockchain that you're not already doing? Well, as
Speaker 1: the network matures and with every release it gets faster,
Speaker 1: that makes it more energy efficient, as well as every
Speaker 1: hardware release. You know, and Intel or video release their
Speaker 1: next generation computers. Those are more energy efficient. So this
Speaker 1: will naturally get cheaper and faster and more energy efficient
Speaker 1: over time. How big of a deal is this becoming
Speaker 1: to investors? Because you find that people who believe in
Speaker 1: Bitcoin are still relying on mining and you see ethereum
Speaker 1: moving over to proof of steak. And so when you're
Speaker 1: talking to investors and people who are thinking about how
Speaker 1: these blockchains work moving forward, what's going to be the
Speaker 1: driving force that pushes people into more environmental concerns? I
Speaker 1: think this is important for a lot of applications to
Speaker 1: wanna build web to services and attract new users, because
Speaker 1: the users really care about energy energy efficiency. So we
Speaker 1: see that a lot of new web three companies really
Speaker 1: Pixelana because of this Um and and really attracted to
Speaker 1: the UM. You know overall roadmap of how we're going
Speaker 1: to make the network even cheaper and faster and more reliable,
Speaker 1: and obviously we're a couple of days away from the
Speaker 1: great merge from the ethereum network. But what does that
Speaker 1: mean for you since that's happened, do you find that
Speaker 1: the competitive forces have changed by any means? Even Post Merge?
Speaker 1: Ethereum is still much less energy efficient than Salona and
Speaker 1: I think I'm really excited about the fact that ethereum
Speaker 1: is moving to proof of stake, because this will finally
Speaker 1: put the debate around whether proof of stake is secure
Speaker 1: to rust. I think ethereum doing this will really make
Speaker 1: it Um, you know, proof proof to everyone that this,
Speaker 1: this technology is not mature enough to handle very large,
Speaker 1: you know, capitalization for for network. How far could you
Speaker 1: go in terms of potentially rewarding the validators or computers
Speaker 1: that themselves use renewable energy? This is not something that
Speaker 1: we've looked at yet because over all, the SALONA network
Speaker 1: uses so little energy that it's uh, you know, almost
Speaker 1: in significant amount to uh, to offset Um. SALONA foundation
Speaker 1: does its own offsets that covers the entire network. So
Speaker 1: when you look more broadly, Crypto, obviously, you know, it
Speaker 1: obviously gets a bad rap for its energy used. Do
Speaker 1: you think that's deserved? Mining is definitely very energy intensive. Um.
Speaker 1: What folks need to understand that, you know, bitcoin mining
Speaker 1: would work in a world without any fossil fuels and
Speaker 1: then the end of the day it's the fossil fuels
Speaker 1: that are the bad part. Um. But it's obvious to
Speaker 1: me as an engineer that we should build technologies that
Speaker 1: are more energy efficient, you know, if they serve the
Speaker 1: same function. So I am definitely, you know, bullish on
Speaker 1: Salana and its energy use when compared to other networks,
Speaker 1: other networks. If you think about also how N F
Speaker 1: T s have related to the ethereum world versus Salana,
Speaker 1: there have been days that you're competing hard. In fact,
Speaker 1: there have been days that you see more n f
Speaker 1: t s really by dollar volumes, tied to Salana, even
Speaker 1: more than ethereum. So how do you see that competition
Speaker 1: playing out? You know, when do you think and do
Speaker 1: you think you can be the more dominant player here? Well,
Speaker 1: I want to congratulate Magic Eton, the company that's the
Speaker 1: premier market place on Salona, for its record breaking volumes. Um.
Speaker 1: So Magic Heaton has show has had volumes bigger than,
Speaker 1: I think, all of etherums and F T s combined
Speaker 1: on a couple of days. Um, that's been amazing, I
Speaker 1: think because salon is so cheap and fast to use
Speaker 1: that when folks experience that they feel like they're using
Speaker 1: a regular web to application and it's really hard for
Speaker 1: them to go back to using, you know, older technologies. Um,
Speaker 1: I hope the strength continues and magic in continues to
Speaker 1: grow and really accelerate. N F the adoption around the world.
Speaker 1: N F T adoption, but n F T S and
Speaker 1: actually staking itself or something that are under the, you know,
Speaker 1: the eye of regulators, particularly the U S Securities and
Speaker 1: Exchange Commission. What type of regulatory risk is there for
Speaker 1: both of these, you know products, if you will, that
Speaker 1: are so tied to the ecosystem? Oh, I think folks
Speaker 1: need to be careful when they look at each n
Speaker 1: f t project. I think the vast majority of them
Speaker 1: are community based, you know, uh, things that are fun,
Speaker 1: uh and build communities and brand around an idea of
Speaker 1: a shared profile, and I think those are pretty far
Speaker 1: from what most folks would consider our security Um. But
Speaker 1: you still need to be careful. Now, you know, I
Speaker 1: have to ask you about the ethereum rge. The ethereum
Speaker 1: blockchain just went through this big, major upgrade and I'm
Speaker 1: curious what your thoughts are on it and if you
Speaker 1: think it potentially makes a Salona blockchain less attractive and
Speaker 1: how you imagine Salona staying competitive and you know, a
Speaker 1: changed world. Well, the theory emerged doesn't really improve scalability
Speaker 1: of the ethereum network. When you look at the number
Speaker 1: of transactions that salona handles from applications and from users
Speaker 1: on a daily basis. That's more than not just ethereum
Speaker 1: but all the E v M ethereum based blockchains combined. Um.
Speaker 1: So I think ethereum is a long way to go
Speaker 1: on scalability. Just do does Salona have any plans for
Speaker 1: an upgrade down the line, or or how? How are
Speaker 1: you thinking about that? Well, Salana is like clinics. It's
Speaker 1: a community driven open source project. There's four teams working
Speaker 1: on the SALONA core already and every release the network
Speaker 1: gets a cheaper, faster, more reliable. So you know it's
Speaker 1: it has a roadmap like Linux. Just make the next
Speaker 1: release better than the than the current one. All Right,
Speaker 1: Anto Yaco Venco, thank you so much for joining us again,
Speaker 1: the CO founder of Salona labs and our own shot.
Speaker 1: Appreciate it all right. Coming up, how crypto and web
Speaker 1: three are colliding with mobile carriers. That is next, Mrs Bloomberg.
Speaker 1: The world of Web three and five g are colliding
Speaker 1: in a new deal between t mobile and the blockchain
Speaker 1: firm Nova labs. T mobile has struck a five year
Speaker 1: exclusive agreement with Nova for a new cellular experience. Noval
Speaker 1: plans to launch helium mobile, which it calls the world's
Speaker 1: first crypto powered mobile service, and that means customers earn
Speaker 1: crypto awards for using the network while saving money. Here
Speaker 1: to explain, a mere Helim's, CEO of noble ABS and
Speaker 1: founder of helium, so a mere how does this work?
Speaker 1: So helium mobile is the world's first crypto carrier, as
Speaker 1: you mentioned. Um, you can think of it from a
Speaker 1: consumer point of view very similarly to an existing mobile plan.
Speaker 1: You sign up, we have a nice APP that you
Speaker 1: will use heavily. Rule like heavily on them. So there
Speaker 1: should be a very seamless sign up. But the key
Speaker 1: difference is that users earn cryptocurrency while they're using the
Speaker 1: network in the form of Mobile Tokens uh, and perhaps
Speaker 1: more importantly, they get to actually build and own the
Speaker 1: infrastructure that they're using. So can think of this similarly
Speaker 1: to airbnb or or Uber or something like that, where
Speaker 1: you're not doing a user of the network, but you're
Speaker 1: also part of the infrastructure and part of building at
Speaker 1: the same time. So if you want to use this,
Speaker 1: how do you sign up? So first of all as
Speaker 1: a waitlisted joint so you can go to hello helium
Speaker 1: DOT COM. That's the first step. Once we're once we launch,
Speaker 1: which is aimed for q one next year, there'll be
Speaker 1: a mobile APP that you can use. Ideally if your
Speaker 1: phone is simcompatible. That's kind of all you have to do.
Speaker 1: You'll just install the APP, you'll get going and the
Speaker 1: SM will be downloaded straight into your phone. Um, if
Speaker 1: you have an older phone that doesn't support SMS, then
Speaker 1: you will. We will send you a physical Sim and
Speaker 1: you'll be able to use it that way. Talk to
Speaker 1: us about the challenges of creating a crypto powered mobile network.
Speaker 1: You know, how is this even possible and what kind
Speaker 1: of trouble shooting are you going to have to do?
Speaker 1: We proved with the IOT network that we launched in
Speaker 1: twenty nineteen that people powered networks are a real thing.
Speaker 1: I don't think people believed it was doable. At the
Speaker 1: time we launched in Austin, only fifty hot spots and
Speaker 1: within three years there are now a million of these
Speaker 1: hot spots across the globe. Building an IOT network designed
Speaker 1: for sensors and low powered devices. This next step is
Speaker 1: moving into the cellular world. So UH, primarily target at
Speaker 1: cell phones, Um, and we use roughly the same tactics right,
Speaker 1: which is that people have shown us that they are
Speaker 1: interested in participating infrastructure and not just being a user
Speaker 1: of a network. They want to own the thing that
Speaker 1: they use, uh, and so we'll, you know, do roughly
Speaker 1: the same thing that we did in the last go around,
Speaker 1: which is that people are incentivized to build and install
Speaker 1: what a basically miniature cell towers on any property they
Speaker 1: have access to and they get rewarded in mobile tokens
Speaker 1: for doing that when people use their hotspots. And you know,
Speaker 1: obviously helium is well known for its long, fine network
Speaker 1: which helps connect low power devices like pet tracking callers.
Speaker 1: I'm curious, you know, with this deck step, what else
Speaker 1: could be possible using this technology the next time. I
Speaker 1: mean the cellular network, is sort of the next logical
Speaker 1: extension of what we're doing. When we designed helium back
Speaker 1: in two seventeen, cellular networks were on our radar as
Speaker 1: a thing to do. Um, the technology and the regulatory
Speaker 1: environment has allowed us to now do that with with
Speaker 1: unlicensed spectrum that we could use. Uh, in the future
Speaker 1: I think you can expect to see other types of
Speaker 1: wireless network get built this way. So there will be
Speaker 1: an opportunity for Wi fi networks and bluetooth networks and vpns.
Speaker 1: And you know, helium is very much a community driven,
Speaker 1: people powered network and people will propose what they want
Speaker 1: to do next. But we're super excited about what we're
Speaker 1: doing here with helium mobile. It's really the world's first
Speaker 1: attempt at trying to do something like this with a
Speaker 1: hybrid people powered and traditional network combined. You've also considered
Speaker 1: switching novel ABS to the Salona Network and given that
Speaker 1: we were just talking to the CO founder of Salana,
Speaker 1: where did you end up on that? So the helium
Speaker 1: network is governed by its users. So there's a community
Speaker 1: driven process for proposing changes. Um, there's a proposal in
Speaker 1: the community. It's called hip seventy. It proposes to re
Speaker 1: architect the way helium works, to separate the architecture, to
Speaker 1: be a little bit simpler, to be a little bit faster,
Speaker 1: and as part of that we're also proposing moving the
Speaker 1: block chage function to the Salana network, primarily because of
Speaker 1: exactly what Anatote was describing. The cost to use the
Speaker 1: network is extremely low, transactions are extremely fast and there's
Speaker 1: a very diverse and large ecosystem of developers and defy
Speaker 1: N F T and other applications that we don't currently
Speaker 1: have access to on the helium network. All right, we'll
Speaker 1: keep watching how this all unfold. CEO of Novle labs
Speaker 1: and helium founder, a mere Haleem. Thank you for stopping by.
Speaker 1: Youtube is doubling down on the creator economy, announcing new
Speaker 1: paths to partnership for creators and launching revenue sharing for shorts.
Speaker 1: This announced during they're made on Youtube event earlier today.
Speaker 1: Let's break it all down with my next guest, Colin
Speaker 1: Rosen Bloom and Samir Chaudhry, known simply as Colin and
Speaker 1: Samir on Youtube itself. They are the creators helping the
Speaker 1: next generation of creators learn and understand what works on
Speaker 1: Youtube and how to build successful long term careers there.
Speaker 1: They were part of this event earlier today and join
Speaker 1: us now from palm spring. So, Colin and Sameir, thank
Speaker 1: you so much for joining us, Colin. Let's start with you. Um,
Speaker 1: you know, there are new benefits to creators here. Creators
Speaker 1: can start making money earlier. Creators can more easily find
Speaker 1: the music that they want and integrate that into their videos.
Speaker 1: How did this all land with you? How much of
Speaker 1: an improvement is this from your perspective? Yeah, I mean
Speaker 1: I think it's a huge improvement for us. There's already
Speaker 1: an incentive for us, as creators that make long form
Speaker 1: videos to post shorts because we find a lot of distribution,
Speaker 1: we find a lot of audience. You know, we don't
Speaker 1: necessarily rely on it from monetization, but now that is
Speaker 1: something we can focus on and I think, you know,
Speaker 1: when I look at this announcement, it's really just about
Speaker 1: the fact that now there is a light bulb that
Speaker 1: can go off for a lot of new creators that,
Speaker 1: you know, they can get paid by the platform and
Speaker 1: they can start building a career. That said, Youtube is
Speaker 1: also upping its commission for shorts, taking fifty five percent.
Speaker 1: I believe that's up from forty five percent Sameir. What
Speaker 1: do you make of that? Yeah, I think. Um, you know,
Speaker 1: the re Qality of it is that on shorts there's
Speaker 1: a little bit more nuanced than long form content, especially
Speaker 1: when it comes to music. Um, you know, music is
Speaker 1: a big part of short form content and Youtube has
Speaker 1: decided to take on the cost of music on behalf
Speaker 1: of the creators. So you know, at a glance, when
Speaker 1: you look at it, you say okay, wait a second.
Speaker 1: You know, this is a flipped version of what we're
Speaker 1: used to youtube typically takes. But you know, what they're
Speaker 1: doing is actually allowing creators to use music that they
Speaker 1: couldn't use before and and covering a license fee for that. So,
Speaker 1: in my opinion, you know, when you look at it,
Speaker 1: the costs they're incurring. I think it it makes sense, Um,
Speaker 1: that in this specific instance, and Swift Colin, there are
Speaker 1: a lot of platforms out there, a lot of platforms
Speaker 1: vying for your time and the time of other creators.
Speaker 1: What didn't you hear from Youtube that you would like
Speaker 1: to hear? To be honest, I was really excited about, uh,
Speaker 1: the opportunity for revenue sharing on short as I do
Speaker 1: think it's super important that you know we are going
Speaker 1: businesses here as creators, uh, and when we do want
Speaker 1: to be partner an on aalistic level with the platforms
Speaker 1: that we're using. I think what will happen is this
Speaker 1: rolls out, is more creators. What we're gonna want a
Speaker 1: lot of transparency about how the payments are doled out,
Speaker 1: because youtube has always been really transparent, Um, and so
Speaker 1: I think that's what we're going to see is like
Speaker 1: a true understanding, broken down from the Creator side, of
Speaker 1: how we're getting paid. Now you're both on Youtube and
Speaker 1: TIKTOK as creators Sameir. Why don't you take this one?
Speaker 1: How do they compare and what do you make of
Speaker 1: the competition between them? So I think there's one fundamental
Speaker 1: difference between the two platforms that, like you know, we've
Speaker 1: been on Youtube for ten years and in those ten years,
Speaker 1: you know, we've always been in partnership with the platform. Um.
Speaker 1: The difference is that when we make money, youtube makes
Speaker 1: money and vice versa, uh, and that that's truly a partnership.
Speaker 1: When it comes to Tiktok, you know, and they're fund
Speaker 1: it's never really felt like a partnership. It's it's very
Speaker 1: unclear how you build a career on Tiktok, specifically when
Speaker 1: it comes to platform payments. Um. Typically we've seen people
Speaker 1: build audiences on Tiktok and then transition them to youtube
Speaker 1: to to build their careers. So in my opinion, when
Speaker 1: you look at this and again from our experience building
Speaker 1: a career on Youtube, there's a different depth of the
Speaker 1: audience and there's also a different depth of platform engagement. Um,
Speaker 1: when it comes to how the platform actually pays you.
Speaker 1: And then again, I think, or additionally, I think when
Speaker 1: you look at Tiktok, a lot of people go to
Speaker 1: Tiktok for the for you page. They're not necessarily going
Speaker 1: for specific creators. If you take the top creators off
Speaker 1: of Tiktok it's still enjoyable on the for you page,
Speaker 1: but if you go to youtube and you start taking
Speaker 1: off the top creators, youtube is a totally different place.
Speaker 1: So I think youtube is a lot more creator focused
Speaker 1: and that comes across in the way that they pay creators.
Speaker 1: So you know, as you think about where to invest
Speaker 1: your time and your money, H Collin, how do you
Speaker 1: see the Creator economy evolving? How you know? How are
Speaker 1: you watching me? There seems to be new opportunities, new platforms,
Speaker 1: m new ways of reaching fans every day. Um, you know.
Speaker 1: How are you making those calculator sations on a daily
Speaker 1: basis about where to spend your time? Yeah, I mean
Speaker 1: I think there's there's no doubt that the majority of creators,
Speaker 1: you know, their primary business is advertising based, whether that's
Speaker 1: being paid by a platform like youtube or working with
Speaker 1: brand sponsors. And I think you know what's already happening,
Speaker 1: but it's going to increase. is going to be more
Speaker 1: direct to consumer, where creators are launching their own brands
Speaker 1: and their audiences have a loyalty to them and not
Speaker 1: necessarily some of the legacy brands that we know. You
Speaker 1: guys also do a podcast series called Creator support. You
Speaker 1: answer questions from your audience of creators. What are what
Speaker 1: are they most concerned about right now? Samir Mad Emily,
Speaker 1: I'm so happy you brought up creator support. That's so great.
Speaker 1: You know, it's really fun because we get to we
Speaker 1: get like the pulse of what the problems are for
Speaker 1: aspiring creators, and what's really important to note is that
Speaker 1: this is the land of creative entrepreneurship and a lot
Speaker 1: of these, you know, young creators are first time entrepreneurs.
Speaker 1: It's a lot of the questions we get are around
Speaker 1: like prising, how do you price yourself? Um, you know, Eagle,
Speaker 1: how do you review contracts? What should I be looking
Speaker 1: out for? Um Taxes? How do I do my taxes
Speaker 1: as a creator? So a lot of the stuff comes
Speaker 1: down to just fundamentals of entrepreneurship and I think that's
Speaker 1: what's really important, is that if you're looking at the
Speaker 1: creator economy. You know, this is really just a form
Speaker 1: of entrepreneurship. It's it's media first entrepreneurship, and I think
Speaker 1: that's what's really important to recognize. The problems that we're
Speaker 1: facing in the creator economy are the same problems that
Speaker 1: that young startups face, that young entrepreneurs face. Um. So
Speaker 1: that's what we see a lot on creator sport. And then,
Speaker 1: I think, beyond that, it's a creative business. So you
Speaker 1: do get a lot of questions around purpose, right what
Speaker 1: like how do I how do I lock into something
Speaker 1: that I can do for the next five, ten years,
Speaker 1: not just, you know, get myself involved in a viral
Speaker 1: trend or something that's happening right now. How do I
Speaker 1: actually turn this into a long term, sustainable career? Um,
Speaker 1: you know, and some of that is yet to be seen,
Speaker 1: but the creators who have done that for a really
Speaker 1: long time. What we're seeing is, uh, you know, ability
Speaker 1: to evolve as platforms evolved and as changes, you know,
Speaker 1: are made to the platforms, like what happened today with Youtube,
Speaker 1: so Gol. And what's one piece of advice for, you know,
Speaker 1: the aspiring content creators out there? A piece of advice
Speaker 1: that's not obvious, especially after seeing these changes from from
Speaker 1: Youtube today. What would you say? Yeah, I mean obviously
Speaker 1: this is a question that we get a lot, and
Speaker 1: what some you're just brought up there. You know about purpose.
Speaker 1: That is actually like. What the advice is that I
Speaker 1: always give is that you know, if you're going to
Speaker 1: be a content creator, make sure that you have a
Speaker 1: true understanding of why you're doing it. Who's the audience
Speaker 1: you want to serve? If you were to take social
Speaker 1: platforms away? You know, what are the communities that you're
Speaker 1: existing in real life, because you know, it's important that
Speaker 1: you always have that base level understanding that what you're
Speaker 1: doing by making media online is actually just like speaking
Speaker 1: to actual people and providing them some values. So I
Speaker 1: always encourage new creators start with your I r l life.
Speaker 1: What are the communities you're a part of? Who are
Speaker 1: the people you want to sir? And then, once you
Speaker 1: know that, you'll have a much longer trajectory as a creator.
Speaker 1: I like that Hashtag, I R L. That one makes
Speaker 1: sense to me. Youtube creators, Colin Rosenblum Samir Chaudhry. Thank
Speaker 1: you both so much for joining us. You can catch
Speaker 1: them on Youtube and Tiktok, and that does it for
Speaker 1: the suggition of Bloomberg Technology. Coming up Wednesday, Larr Hippo,
Speaker 1: managing partner, Eric Hippo, we'll be joining us, and don't
Speaker 1: forget to check out our podcast, wherever you get your podcasts.
Speaker 1: I'm emily chain into Francisco. This is Bloomberg